Factors that affect a firm's business risk include the following: Operating leverage, variability in product demand, a firm's capital structure, the firm's exposure to litigation and government regulation O A firm's capital structure, variability in production costs, a firm's international exposure, the speed of product innovation in the market o Operating leverage, variability in product demand, a firm's international exposure, legal and regulatory exposure of the firm O Financial leverage, variability in product demand, a firm's international exposure, a firm's capital structure